Djibouti Overview

The Republic of Djibouti is located in the "Horn of Africa". In 1999 Djibouti held its first multi-party presidential elections and in April 2011 Ismail Omar Guelleh was re-elected as President. In February 2013, Djibouti held its most recent parliamentary elections. The Republic of Djibouti was formally a French Territory of the Afars and the Issas and gained independence in 1977.

Djibouti occupies a strategic geographic location at the mouth of the Red Sea and serves as an important trans-shipment location for goods entering and leaving the east African highlands. Djibouti maintains strong ties to Europe, USA, Middle East and Far East governments, and hosts a large US and EU military presence.

Despite the significant oil and gas production in neighboring Yemen and the presence of hydrocarbons found in Eritrea, Ethiopia and Somalia over the last 50-years, there is no history of exploration for hydrocarbons in Djibouti until the commencement of work by Oyster in 2012.

Oysters blocks are located within two successful hydrocarbon rift plays, namely located in the northern extension of the East Africa Rift System, where significant oil discoveries have been found in Uganda and more recently the discoveries in Kenya, and in the southern extension of the Red Sea basin - the northern extension having been producing oil and gas for over 50-years.

Oyster signed a production sharing contract (PSC) in September 2011 with the government of the Republic of Djibouti with an effective date following the decree of 1st March 2012. The PSC was awarded for four blocks covering an area of 14,100 km˛ (3.5 million acres).

Oyster'swork to date, has proven the presence of the petroleum system elements, with Jurassic aged source and 3 potential reservoir fairways synonymous with other plays in the Region, that may prove to be commercially attractive targets for further exploration and future production in Djibouti.

Operations Map

Block 1

Block 1 is located primarily onshore and extends into the shallow water of the Gulf of Aden in the southeastern part of the country. It borders Ethiopia and Somaliland and measures approximately 3,400km˛ (840,000 acres) in area. Mesozoic (Jurassic and Cretaceous) sediments outcrop have been identified in the south of the block, and Oyster is targeting these Mesozoic sediments where they underlie a covering of Tertiary volcanic rocks. There is strong evidence for an active petroleum system in the general area with oil seeps recorded to the south and east in Ethiopia and Somaliland respectively, and the large and prolific Jurassic oil fields in Yemen offer potential analogues.

Block 2

Block 2 is located onshore in the north of the country and measures approximately 3,200km˛ (790,737 acres) in area. By inference from outcrops to the north in Eritrea and south in both Djibouti and Ethiopia, Oyster is targeting the Mesozoic sedimentary basin which is thought to underlie the extensive covering of Tertiary volcanic rocks. There is strong evidence for an active petroleum system in the general area with oil seeps recorded to the south and east in Ethiopia and Somaliland respectively, and the large and prolific Jurassic oil fields in Yemen offer potential analogues.

Block 3

Block 3 lies offshore northern Djibouti in the Red Sea and measures some 2,300km˛ (568,342 acres) in area. The Red Sea Basin is over 1600km long and 360km wide; further to the north, in countries such as Saudi Arabia, Egypt, Sudan, the Red Sea Basin is a proven hydrocarbon province. Oyster is targeting a possible extension of the Red Sea Basin into the Block.

Block 4

Block 4 is located onshore in the south west of the country and measures 5,200km˛ (1,284,947 acres) in area. Oyster is targeting the Mesozoic sedimentary basin which is thought to underlie the extensive covering of Tertiary volcanic rocks. There is strong evidence for an active petroleum system in the general area with oil seeps recorded to the south and east in Ethiopia and Somaliland respectively, and the large and prolific Jurassic oil fields in Yemen offer potential analogues.